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The de-leveraging that occurred last fall was largely attributed to the hedge funds running for cover however, not all the hedge funds have disappeared as John Paulson demonstrated by taking a 4.5% stake in Kinross Gold Corporation (KGC) (read more…)

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As we can see from the above chart Yamana Gold Incorporated (AUY) has been severely sold off recently which could be present us with a future options play as and when gold moves higher. Many of the stocks in this sector have experienced a similar fall and all in a short time too, just shows what a volatile market sector this is (read more…)

With the HUI having risen from 280 to the 400 level at the beginning of June 2009 we took the view that it was time to take some action that would protect our portfolio. Gold was at $980/oz and the US Dollar was looking extremely oversold with the possibility of a bounce on the cards (read more…)

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The September $65.00 PUT contracts in Randgold Resources Limited (GOLD) that we purchased on the 11th June 2009 for $5.00 per contract have continued to improve and closed at $7.20 today up 41% in 5 days.

Randgold fell again $1.62 or 2.39% to close at $66.05 as we can see on the above chart (read more…)

Chart courtesy of Stockcharts

The September $65.00 PUT contracts in Randgold Resources Limited (GOLD) that we purchased on the 11th June 2009 for $5.00 per contract have got off to a good start by gaining 25% to close at $6.30 today. Randgold tumbled yesterday losing 4.60% to close at $67.67 (read more…)

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Today we purchased the September $65.00 PUT contracts in Randgold Resources Limited (GOLD) in anticipation of a pullback for $5.00 per contract. Randgold now looks vulnerable as the stock price has increased from $41.59 on 17th April 2009 to $70.93 today, an increase of 60% in two months. The P/E ratio is 148 which is massive when compared with Yamana (AUY) at 15 or Goldcorp (GG) at 17 and Newmont (NEM) at 31 (read more…)

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On 28th May we decided to lock in profits of over 80% gained on Randgold Resources Limited (GOLD) when we sold all of shares for $68.69. The question now is can we use Randgold as an insurance against a possible fall in the gold stocks sector.

We believe that we are in a strong bull market for precious metals and therefore we want to keep hold of our core position of Agnico-Eagle (AEM) Kinross (KGC) Yamana (AUY) as we expect them to be trading a lot higher by the year end. However gold itself took a hit on Friday and the US Dollar bounced from an oversold position to gain 1.63% in a day as we can see from the chart above (read more…)

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Fronteer Development Group Incorporated (FRG) has doubled since the 20th April 2009 having absorbed Aurora Energy Resources Incorporated recently making it a two pronged play of both gold and uranium. Aurora has a 100% owned uranium portfolio in the Central Mineral Belt (CMB), is underpinned by the Michelin uranium deposit which contains a Measured and Indicated Mineral Resource of 67,434,000 pounds U3O8 and an additional Inferred Mineral Resource of 35,465,000 pounds U3O8 (read more…)

As the Inflationists and the Deflationists remain firmly entrenched in their respective camps we need to consider the question of What If deflation Wins and would it effect gold producers as that is where the bulk of our cash resides (read more…)

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That was the month that was for the precious metals sector whereby the precious metals stocks led the charge just pipping an outstanding performance by silver which beat gold and the DOW leaving the US Dollar to collect the wooden spoon (read more…)